Bulgaria Received Nearly €900 Million as the Fourth Payment Under the Recovery Plan

The European Commission (EC) transferred €896 million to Bulgaria as the fourth payment under the Recovery and Resilience Facility (RRF). With today’s transfer, on July 31, the country has now received 68% of the total €6.17 billion allocated to it under the RRF.

The payment now reflects progress on key reforms and investments in three areas that had long been delayed:

• The first is the rule of law and the business environment – including measures to combat corruption through the creation of a politically and financially independent Anti-Corruption Commission and the introduction of rules to regulate lobbying activities;
• The second is the wider use of renewable energy by supporting the installation of nearly 1,400 residential solar water heating or photovoltaic systems in households;
• The third area is sustainable infrastructure and transportation – new public service contracts for rail transport and a legal framework for zero- and low-emission mobility, including regulations on electric mobility and low-emission zones.

Friday’s transfer was once again reduced by the Commission due to Bulgaria’s failure to meet its commitments. Deputy Prime Minister Atanas Pekanov stated about a month ago that he expected approximately 1 billion euros from Brussels by the end of July. At the time, he emphasized that the funds were extremely important and would help facilitate investments that benefit society as a whole. He described the transfer as a “vital breath of fresh air for the budget.”

Work in Progress

Additional steps are still needed to implement Key Milestone No. 176 regarding the entry into force of legislation in the field of public transportation; Key milestone No. 208 regarding the entry into force of legislation in the field of water supply and sanitation; and Target No. 308 regarding support for the cultural sector,” the EC notes, however.

As a reminder, Bulgaria submitted its request for the fourth payment on April 2, during the “Gyurov” caretaker government, which included 26 key milestones and targets covering 10 reforms and 12 investments. A total of 1.1 billion euros was requested at that time.

The Commission has stated that it will consider disbursing the remaining funds once Bulgaria has fulfilled all key milestones and targets.

However, time is running out, as Pekanov warned: all outstanding milestones and targets must be completed by the end of August, and the final payment requests must be submitted by the end of September 2026.

Translated with DeepL.